IHS, a research partner of IAB Europe, conducted a study commissioned by SpotXchange and concluded that the European programmatic video market will grow an average of 77.1% per year through 2017. The report expects the market to reach €626.5 million ($822 mil.) in the five biggest European markets: The UK, France, Germany, Spain, and Italy. IHS forecasts that by 2017, one-third of all European online video advertising revenue will be generated via programmatic sales. In 2012, 4.6% of the online video ad revenue came from programmatic sales.
"Our study shows that programmatic buying will be a core driver of online video in Europe over the next five years, growing on average 77% a year in terms of revenues," stated Daniel Knapp, director of advertising research at IHS. "But as the programmatic video landscape is developing, it will not converge into a one-size-fits-all solution. Different legacy market structures, the availability of data, and ultimately marketing cultures mean that adoption in Europe will vary by country and by publisher, both in terms of pace and form.”
The UK is currently the most advanced European country in terms of programmatic buying, and IHS predicts the country to remain top dog through 2017. In 2012, 9% of all online video ad revenue in the UK came via programmatic sales, and that figure is expected to crack 30% by 2015 and rise to 38.9% by 2017. The value of the market is expected to reach €224.5 million by 2017, up from €20.5 million last year.
France, currently the second-leading European country in programmatic online video ad revenue, is expected to see €157.9 million in revenue from programmatic sales by 2017, up from €5.5 million in 2012.
IHS predicts Germany to reach €92.3m revenue (up from €3.3m), Spain to see €88.7m (from €4.2m), and Italy to rake in €63.2m (from €2.5m).
“This study confirms that while the online video industry has been growing exponentially across Europe, each country is at a different stage of adoption and capability. This research helps define the growth for each market and explain the different factors publishers need to understand in order to create a strategy for programmatic selling," stated Andrew Moore, European managing director of SpotXchange.
The full report can be downloaded here.
Source: IHS "Video Goes Programmatic" September 2013 report commissioned by SpotXchange.